An irrigation district that has the major portion of an inland navigable body of water within its exterior boundaries, and has filed and been granted a water right certificate from the Department of Ecology, may become an irrigation and rehabilitation district.  An irrigation and rehabilitation district may be organized: 

• for the construction or purchase of works, or parts of the same, for the irrigation of lands within the operation of the district;
• for the reconstruction, repair or improvement of existing irrigation works;
• for the operation or maintenance of existing irrigation works;
• for the construction, reconstruction, repair or maintenance of a system of diverting conduits from a natural source of water supply to the point of individual distribution for irrigation purposes;
• for the execution and performance of any contract authorized by law with any department of the federal government or of the State of Washington, for reclamation and irrigation purposes;
• to further the recreational potential of the area;
• to further the rehabilitation or improvement of inland lakes and shorelines; and
• for the modification or improvement of existing or planned control structures located in the district to further the health, recreation, and welfare of the residents in the area.

The directors of an irrigation and rehabilitation district may specially assess land located within the district for benefits received.  The assessment may not exceed 25 cents per $1,000 of assessed value without voter approval at an election called for that purpose.  Notice of the election must be given.  The special assessment is due at times and in amounts designated by the district directors and must be provided to the county auditor in writing.  The amount must be added to the general taxes.

Existing provisions for collecting assessments are removed.  The directors of an irrigation and rehabilitation district must annually determine the amount of money necessary to carry on the rehabilitation efforts of the district, and must classify the property within the district in proportion to the benefits to be derived from the district's rehabilitation operations.  The district must apportion and assess the lots, blocks, tracts, and parcels of land or other property, and the assessment must be collected with the county general taxes.  The district budget for rehabilitation purposes must not exceed an amount equal to $1 per $1,000 of the assessed aggregate valuation of all property within the district unless authorized to exceed that amount by a proposition submitted to the electors of the district and voted on by a majority of those electors.

A district may use the assessed valuation of property as a component in determining the district assessment of any class of lots.  Property designated as forestland, farm and agricultural land, or open space land must use the assessed value applicable to such land.  The district must provide notice of the proposed assessments and hold an equalization hearing.